Friday, 21st December 2007 (2304 views)

Barra Resources has come across a major gold discovery in the Burbanks underground mine in Western Australia.

The company hit a gold intersection yielding up to ten kilograms of gold per tonne, which Barra is now describing as on the biggest gold discoveries in Australian history, reports Australian Associated Press.

Shares quickly surged following the discovery but further drilling was currently underway to ensure it was not a one-off.

Dean Goodwin, managing director of Barra Resources, confirmed the scale of the gold intersection: "I have been drilling for two decades in and around the Kambalda-Kalgoorlie gold province and cannot recall any intersection of this magnitude."

The company has indicated that the discovery is not near Burbanks' previous historical underground workings and is also below current mine development.

Barra will intensify drilling at the intersection following a halt in work in time for the Christmas break.

Also this week, the Australian mining company Oxiana has confirmed that it is to spend $310 million (£153 million) in the development of a new gold mine in Indonesia.

 

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